The former Fed chair is promoting his new book. He should admit his role in the housing crisis, not insult our intelligence.October 28, 2013 |

Alan Greenspan will go down in history as the person most responsible for the enormous economic damage caused by the housing bubble and the subsequent collapse of the market. The United States is still down almost 9m jobs from its trend path. We are losing close to $1tn a year in potential output, with cumulative losses to date approaching $5tn.

These numbers correspond to millions of dreams ruined. Families who struggled to save enough to buy a home lost it when house prices plunged or they lost their jobs. Many older workers lose their job with little hope of ever finding another one, even though they are ill-prepared for retirement; young people getting out of school are facing the worst job market since the Great Depression, while buried in student loan debt.

The horror story could have easily been prevented had there been intelligent life at the Federal Reserve Board in the years when the housing bubble was growing to ever more dangerous proportions (2002-2006). But the Fed did nothing to curb the bubble. Arguably, it even acted to foster its growth with Greenspan cheering the development of exotic mortgages and completely ignoring its regulatory responsibilities.

Alan Greenspan is just a puppet who carried out his master's order. The real mastermind is the Feds. (FBI) They hold large quantity of houses in my case and need a low interest rate to maintain the value of this property. So though Greenspan is not on the seat, Bernanky or his follower will still keep the interest rate low. That's why you saw they keep the QE programme on and continue to print money.

This was what happened in 1990s. The Feds started to buy in the real estate property from 1990 when they drove down the housing price. In 1997, when they found I trying to buy a house, the Feds passed the “Taxpayer Relief Act” to check other buyers from competition. Then they pushed up the housing market with the “dot com” babble. Why? Because the area where I live is the Silicone Valley where the high tech. companies gather in and where the Feds hold a lot of property they bought in my case. The tactic was to encourage the establishment of new company. The high salary employee would boost the property price.

The “dot com” bubble exploded in 2000. The Feds might have made good profit in property market in elsewhere but the San Francisco Bay Area where they invested heavily in my case. How to release their wealth? Then came the second bubble.

In April 2001, Pentagon created EP-3 spy plane collision incident in South China Sea. In secret deal with China to release the spy plane crew, the Feds bribed China to frame a drug case in US. As a payback to Pentagon, the Feds helped Pentagon prepared 911 terror case. Silverstein leased WTC at that month. 911 also gave the Feds the Patriot Act they have longed for. (See: “695. The collusion of D.O.D. and D.O.J. (11/28/2011)”)

With Patriot Act and a framed drug case in hand, the Feds now was sure Kat Sung would be eliminated. What needed was a booming housing market. How to get it? By manipulate the Federal Reserve.

You can see how dramatically the interest rate dropped to the bottom in 2001 that created a housing babble US ever had which finally caused financial collapsing in 2008.

However, the property the Feds hold in Kat Sung’s case is still there, how to deliver the hot potato into other people’s hands? It’s still the mission of Federal Reserve.

Reuters – Wed, Sep 26, 2012.. .

(Reuters) - The U.S. Federal Reserve launched a new round of monetary stimulus this month, saying it will buy $40 billion in housing-backed bonds each month until the labor market improves substantially.

The Fed has kept interest rates near zero since December 2008 and now says it expects weak economic conditions will warrant keeping them there through at least mid 2015, half a year longer than it had earlier expected.http://news.yahoo.com/factbox-fed-offic ... iness.html

When Federal Reserve exhausted their interest rate tool, to help the Feds to break away from their straits, Federal Reserve will turn papers into money by printing 40 billion dollars each month – all of them will poured into the real estate market in order to create a third housing babble. This time, the bubble will come with severe inflation, I foresee.

In 1990s, when I abandoned driving, I used to walk to the super markets. I was impressed by the large noise of cheering children in a swimming pool along Amberwood Ln. The pool belongs to a Condo community. Probably started from 2000, the children disappeared. I was too, impressed by the dead silence when I passed that swimming pool. The Feds must have moved all families away. (at least the families with children) I realized how large scale the case was that the Feds applied on me.

This year, I learned the skill to post the picture to the internet. On August 5, Sunday, between 4 pm to 5:30 pm, I took pictures of the two swimming pools near my residence. Summer will end. New school year will soon start. The swimming pool is as dead as it was in recent decade.

With two decades long experience, I get familiar with some tactics used by the Feds. One tactic is they always having their agents or informants to befriend with the target as close as they can. They changed colleagues of my wife by introducing her to a new company. (See "32. "Operation Fire Dragon"") They changed all playmates of my daughter even she was still a child. As for me, they arranged a "Wang family".

In about 1992, the Flea Market had a re-arrangement of selling space. My new neighborhood was Mr. Wang. Mr. Wang spoke my native language - Shanghainese. Besides selling in Flea Market, he also ran a restaurant. (see "25. Neighbor seller and gun" and "181. Soup (11/21)") He had two sons whom ran a moving company. His youngest son (Wang Y. son) also doing business in flea market. Wong Y. son found Mao (importer) and start to sell same porcelain figuring as mine. He had a retail space in front of mine, so he intercepted business from me. In wholesale market, he beat me with losing money price. I puzzled with the low price he could wholesale. How could he make living on that? Later I realized that he was only a tool of the Feds being used to push me out of business.

Mr. Wang used to chat about the moving business his son ran. Once he was absent in weekends. When he appeared next week, he said he had a long distance moving order. A Korean customer moved from California to East Coast because the company he worked for was re-located. When he detailed the furniture that customer had, I had a feeling there was no privacy for a moving company. I once wondered why a big company would cost that much to moving from San Jose to Austin. Now I think it was just a warrantless search by the Feds. They control the CEO of the company and the moving business. They could carry out such tactic when they think it's necessary.

Since Wang Y. son gave me a hard time in business. I was alert on their action. One day in that year, I saw a carry on van looked like Wang's moving company's in the end of the street. I went there to have a look. It was Wang's moving company. Mr. Wang was moving out furniture for a resident. It was the first time I realized that the Feds were emptying my community.

Sometime later, when I stopped my car before a red light at a crossing road, I suddenly recalled that I didn't tell the teacher of the pre-school that I would come to pick up my daughter later that day. I turned back my car towards the pre-school. Shadowvale Dr. is a back street from my residence. I rarely use it. But that day, from main street to pre-school, it could be a short cut. So I drove that way. I was surprised to see Mrs. Wang hurried out from a lane in Shadowvale Dr. It was seven something in the morning. She was obviously going to work. Mr. Wang's residence was in Milpitas at that time. How could his wife live in my backstreet?

The two events broadened my knowledge - the Feds like to empty target's neighborhoods and move their informants in.

In early 1990s, I had my daughter attending a Small World Pre-school. It was not far away from my home. It took about five minutes to walk to there. There were a lot of children in Small World Pre-school when she was first there – probably about 20-30 something. Then the number shrank suddenly to about 10 or less.

In 1994, because the constant EM-wave radiation harassment from the Feds, I left to China. My daughter went to a primary school. When I returned from China, the Small World Pre-school shut down. There was no demand for it. The Feds had moved most ordinary residents away from my community.

The public park next block to my residence also deserted. Though it was well maintained but rare people were seen there. The playground was used to be full of kids. My daughter got her three play-mates there. They disappeared after their families moved away. The Feds arranged three new play mates for her.

Here are pictures I took on Sunday, 9/2/2012 at 10 in the morning. The park remained like this for the most time. park 9/2/2012 10:00 am Sundaypark 9/2/2012

Since I started this thread, several times I talked about the deserted park. Then occasionally there was a kid or two playing there. Sometimes there even was a barbecue gathering. These were cover up operation.

After I wrote “733. Swimming pool speaks (8/20/2012)”, I started to see a kid or two playing in the swimming pool. I knew that’s a cover up response to my revelation. I used to go shopping in afternoon, I broke my habit to go in the noon. On Saturday, Aug. 11, 11:40 am, I passed that swimming pool. No, nobody was there. It was a hot day, the high temperature was 92F degree.

In early 1990s, many unusual things happened. Mr. Wang’s moving company moved my neighborhood out from my community, his wife was seen living in my back street, the Small World Pre-school shut down due to the disappearance of children, the desert of the public park…. All these indicated that the Feds had moved the residents away from my area. I was puzzled – it took a lot of money.

At the same time I found the Feds were bandits. They murder people to loot their wealth, especially when they have cash. My health had been hurt by the Isotope money. It should be used to track drug money. I never touch drugs. Why they applied it on me? Obviously they hoped to find a treasure of cash pile. Earnie might have died because he had too much cash stored. See:”7. Alleged murder of Ernie”, “ 8. FBI's profit”.

Another way to steal money from victims was through the stealing of credit card. See: “34. The lost Credit Card “.

So if such a criminal group bought a lot of real estate property, would they just for law enforcement? Of course they’d make money on that.

In later 1990s, I totally abandoned the driving because there was too much harassment and danger from a manipulated car. I turned onto public transportation.

One day while I was waiting for the bus, I saw an advertising board. A small one -the size like an election campaign board with politician’s name. It said, “Cash For HouseCall 1-800-9**-FAST”Then I noticed this advertisement was everywhere. ** were numbers varied from different location. For example, ** in Oakland was different from San Jose. 9** might be the number for California area. In Florida it could be “1-800-***-FAST”. The firm behind this advertisement must be a big one. It started to collect property countrywide in later 1990s. It foresaw a booming real estate market.

This firm is a powerful one. It successfully blew up a housing bubble to harvest the profit until it popped off in 2006.

After I found the Feds was buying the house countrywide, I expected they would push up the real estate price. I looked at the housing advertisement to see if there was one I could afford to. I wouldn’t miss the chance of a coming bull market.

I found a four bed room town house at the price of 80,000 and called the estate agent. I asked the agent if the seller had a loan that was assumable. She told me the assumable loan had been abolished for a long time, so it was impossible to find any more of this kind of loan in the market. It ended my attempt to buy a house in mid-1990s. The Feds control the bank and it was impossible for me to borrow any loan from the bank.

When I was going to buy my house in 1985, I was pre-warned by the manager that the company would be shut down. Two months later when I moved into my house, the company really shut down and I was unemployed. At that time I thought it was just a coincidence.

Many years later, I started to realize the house I bought was the target of the Feds. They murdered the former landlord. When the widow of former landlord tried to sell the house, the buyers failed to purchase due to the loan problem because the bank is controlled by the Feds. The continuing failure in deal forced the widow to lower the price of the house. I was in waiting list. When it was my turn, they shut down the company I worked. Bank wouldn’t lend money to unemployed.

I was able to buy the house because there was assumable loan – a loan pre-owned by the seller which could be transferred to the buyer automatically in house trading, no bank approval needed. It was a very popular loan at that time. With assumable loan and the money borrowed from my relatives, I bought the house.

Assumable loan was a good tool in real estate business. It benefits both side of trading. It makes a deal easier and faster for seller and buyer. But that goes around the interference of the Feds. (through the bank approval) I think it was my case that prompted the abolishing of assumable loan. Housing industry lost a nice tool just because the Feds want to maintain their fascist control.

You are so full of baloney its not funny. Assumable loans were not abolished because of you, they were done away with because, as you said no approval has to be done, which was wrong with the banking and loan industry. Unqualified buyers got their way into homes, knowing they were too weak financially to make the payments, which, along with variable rate loans, led to for closures.

Secondly, by your own admission, you bought only because relatives lent you money to get into the house to begin with. Another scam that ends up borrowers, not really able to buy, and have no down payments of their own. Something that is asked of any loan now is the question "did you borrow any money for your down payment"

Give it a break already, the housing and loan industry went belly up because of all the lies and abuses to get people into loans and a payment they could not afford, because they would not qualify. Only loopholes in assumable loans got them in, and everyone else paid the price for it when a glut of foreclosures flooded the market, driving all our prices down.

Do not know where you found a 4-bedroom home for 80K, but if it was that low, it was in a hard pressed area, and probably why your company was floundering and went out of business. Places with flourishing business, means one thing. Supply and demand, raises the value of real estate. In California you would not find any size home in the 80K range.

Although I gave up the attempt to buy a house when I learned that they abolished the assumable loan, the Feds had a swift response to my housing inquiry. In following month I found the housing price went up. Low price house disappeared from the list. Furthermore, soon there came a new law:

Taxpayer Relief Act of 1997

In 1997 President Clinton signed into effect the Taxpayer Relief Act of 1997, which included the largest capital gains tax cut in U.S. history. Under the act, the profits on the sale of a personal residence ($500,000 for married couples, $250,000 for singles) were exempted if lived in for at least 2 years over the last 5.t

When I heard this Act, I realized it was a measure to suppress other buyers to make money in a coming housing babble blown up by the Feds. Investors won’t buy in a downwards market. They emerge in an upwards market. This Act blocks other people to compete with the Feds in real estate market once the Feds blowing up a babble. Common buyers have to wait for five years if they want to make good profit while the Feds had the houses in their hands for years already. The Feds started to empty my community and buy in the house in 1990 .

You can see how the Feds drove down the real estate value dramatically in 1990 when they started to buy in. Around 1996, when I recognized there would be a booming estate market and attempted to buy a house, how the Feds checked the other buyers with that five years new rule - Taxpayer Relief Act of 1997 and pushed up the housing market in following years. The first housing babble popped off before the five year ending of new “Taxpayer Relief Act”. You can see it from the Chart.

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